Buzz

The promise of environmental conservation incentive programs that provide direct payments in exchange for conservation outcomes is that they enhance the value of engaging in stewardship behaviors. An insidious but important concern is that a narrow focus on optimizing payment levels can ultimately suppress program participation and subvert participants’ internal motivation to engage in long-term conservation behaviors. Increasing participation and engendering stewardship can be achieved by recognizing that participation is not simply a function of the payment; it is a function of the overall structure and administration of the program. Key to creating innovative and more sustainable programs is fitting them within the existing needs and values of target participants. By focusing on empathy for participants, co-designing program approaches, and learning from the rapid prototyping of program concepts, a human-centered approach to conservation incentive program design enhances the propensity for discovery of novel and innovative solutions to pressing conservation issues.

Territorial user rights for fisheries are being promoted to enhance the sustainability of small-scale fisheries. Using Chile as a case study, we designed a market-based program aimed at improving fishers’ livelihoods while incentivizing the establishment and enforcement of no-take areas within areas managed with territorial user right regimes. Building on explicit enabling conditions (i.e., high levels of governance, participation, and empowerment), we used a place-based, human-centered approach to design a program that will have the necessary support and buy-in from local fishers to result in landscape-scale biodiversity benefits. Transactional infrastructure must be complex enough to capture the biodiversity benefits being created, but simple enough so that the program can be scaled up and is attractive to potential financiers. Biodiversity benefits created must be commoditized, and desired behavioral changes must be verified within a transactional context. Demand must be generated for fisher-created biodiversity benefits in order to attract financing and to scale the market model. Important design decisions around these 3 components—supply, transactional infrastructure, and demand—must be made based on local social-ecological conditions. Our market model, which is being piloted in Chile, is a flexible foundation on which to base scalable opportunities to operationalize a scheme that incentivizes local, verifiable biodiversity benefits via conservation behaviors by fishers that could likely result in significant marine conservation gains and novel cross-sector alliances.

While microfinance models have been hugely successful on a global scale in providing the means for people to escape extreme poverty, they aren’t often used to finance payments for ecosystem services projects that offer many poverty alleviating benefits. Despite it being risky and costly, both sectors see potential in working together on a larger scale.

The Ecosystem Marketplace talks to Josh Donlan about the opportunities and challenges of leveraging microfinance approaches for environmental conservation. Check out the article here.